DRIED MILK QUESTION.

Matamata Record, Volume II, Issue 86, 13 June 1918, Page 1

DRIED MILK QUESTION.

New Process Coming. Six Months Hence. The annual dinner of the Waikato Co-operative Dairy and 1 Cheese companies was held in the Town hall, Hamilton, on Thursday, Mr H. 0. Cooper (Waihou) presiding. Among those present were Messrs R. F. Bollard and J. A. Young, M’s.P. The hall was not large enough to accommodate all shareholders who wished to accept the invitation to be present, but after several sittings the wants of all were satisfied, and the chief business of the evening the announcements which all had come to hear —were proceeded with. Over 600 suppliers were present. Mr Cooper made the opening address, which was enthusiastically received. Many, many cheers greeted Mr W. Goodfellow upon rising to speak. After introducing several prominent dairymen Mr Goodfellow dealt with matters concerning the Waikato company. He stated that in butter alone, despite the fact that the quantity from the province for the season had decreased by 15 per cent., the output of the company had increased by over 100 tons. He regretted that Mr A. G. Shirley, the factory manager, was not present, but stated that he was at present in America on important business —that of investigating various dried milk processes. Regarding the latter, he said there had been extravagant statements made, one of which was that the Waikato company would pay out from 3s to 5s per lb butterfat. Now, these had been made in all seriousness by some, but although he could not hold out a hope of such a high price as ss, he knew that the dairying industry in New Zealand was but in a stage of transition, and yet it was from four to five years behind the times. Touching on the matter of dried milk he said that the fact had suddenly been awakened to that there was a lot of money being made out of a product which was nothing more or less than dried milk. Several companies had become convinced that this menace to co-operation would have to be combated. A mission had been sent to America, and he was glad to be able to state that to all appearances they had been successful. He believed that they would be able to prepare a dried milk which would be of better quality than any on the market. It would be more soluble than products at present on offer, Dried milk was not a patent, but certainly a trade name was registered. They were informed by their representatives that for some years dried milk, condensed milk and concentrated milk was being made in America, the cheese and butter factories in many cases having closed up.- The companies operating there were proprietary and the plants had been paid for out of profits, and yet payments had been made to suppliers of from 3s to 4s per lb on a butter-fat basis. The adoption of a similar scheme in New Zealand would not detrimentally affect the butter business, but should be to its advantage. The drying process would practically be in respect to skim milk, thus there would still be fat for butter. He estimated that, on present prices, butter-fat, which brought 190 s on the London market as butter, would with skim-milk in bring 510 s as dried milk. It was estimated that when plants were installed a price of 3s 6d per lb would be paid suppliers, and it was hoped that a commencement would be made in competition with the existing factories at Waihou Valley and Matamata. It was also hoped that the Cambridge company would operate in its district. This course was suggested to cut the proprietary profits down to a minimum, and so put the money direct into the pockets of the producers. He had high hopes —the' indications were that way —that prices for dried milk would remain good for many years. He believed that on next season’s contracts, if on a co-operative basis, something like 3s 6d per lb butter-fat could be paid to shareholders. He believed that it would be but a few years that many dried milk con-

cerns would be running in the South Auckland province, and it would be this which would be the salvation of co-operation in the district. The position had been forced on them by proprietary competition, and the companies had to act to safeguard co-opera-tion. His company would be pleased to entertain proposals for installation from shareholders from suitable districts, but he did not think that it would be possible to instal any plants inside of six months. Mr Goodfellow’s speech was punctuated with applause and deafening cheers greeted its conclusion. It was ably supported by a fellow-director, Mr J. A. Clark, who paid glowing tributes to the foresight and business acumen of the previous speaker. On reports received he also prophesied success for the contemplated scheme, and emphasised the effect on the co-operative principle.

The indications were that the matter of most interest during the evening was that "of dried milk, and all remarks were keenly listened to and most enthusiastically received.